The Commerce Department released a study in February showing that the confectionary industry lost nearly three jobs between 1997 and 2002 for each sugar growing and harvesting job saved through high U.S. sugar prices.

The report said chocolate, candy, breakfast cereal and other sugar users paid 23.5 cents for a pound of refined sugar in 2004, more than twice the world price of 10.9 cents. This placed U.S. companies "at a competitive disadvantage to foreign competitors" and lead many to move their operations to Canada or Mexico.

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Prices for refined and raw sugar rose to multiyear highs earlier this year after hurricanes in the Gulf of Mexcio region hit crops and refineries in August and September of 2005. Analysts say sugar's price may go still higher, citing a low stockpile and high gasoline prices that prompted Brazil, the No. 1 sugar producer and exporter, to divert more of its cane crop to produce ethanol.

"Prices have just skyrocketed this year, and in come cases it has even been difficult to secure the supplies," said Cal Dooley, president of the Food Products Association.

Dooley called the U.S. sugar program "antiquated" and a growing concern for members such as Nestl\ufffd and Kraft Foods.

Dooley said food makers view the U.S. sugar program as "very archaic" and believe it is "contributing to a lot of food manufacturers producing sugar-rich products moving their operations outside the United States so they can have greater access to international sugar supplies."

The U.S. is the No. 2 net-sugar importer in the world, according to the American Sugar Alliance. USDA estimated imports in fiscal year 2007 could total 1.776 million short tons raw value. That's down significantly from a year ago when hurricanes cut output, but up 22,000 tons from 2004.